Fannie Mae Prediction

“I don’t think the Fed ultimately would be troubled with a 6.5% mortgage rate.”

Freddie Mac Weighs In

And Frank Nothaft, Freddie Mac VP and chief economist, at virtually the same time explained:

“As the economy continues to improve, we expect to see continued upward movement in long-term interest rates… At today’s house prices and income levels, mortgage rates would have to be nearly 7 percent before the U.S. median priced home would be unaffordable to a family making the median income in most parts of the country.”

Only time will tell. However, the common wisdom suggests we plan on rates increasing. When you decide whether this is the right time to buy, consider the effect of a higher monthly cost in the future.